American Airlines CEO quells U.S. bankruptcy talk, says demand improving

- Advertisement -
American Airlines CEO quells U.S. bankruptcy talk, says demand improving

View photos
- Advertisement -
- Advertisement -
- Advertisement -

Boeing 737 jet sits at a gate at Washington’s Reagan National airport with U.S. Capitol building in the background in Washington

American Airlines Group Inc <AAL.O> is not considering a Chapter 11 bankruptcy filing, Chief Executive Doug Parker said on Wednesday and dismissed speculation that a major U.S. carrier could disappear due to the coronavirus pandemic.

“Bankruptcy is failure. We’re not going to do that,” Parker told a conference, adding: “I don’t think you’ll see any airline go by the wayside as a result of this crisis.”

Shares in American rose 5.5% in late trading.

The U.S. airline industry is expected to be 10% to 20% smaller in the summer of 2021, Parker said, and its recovery would depend on how passenger demand and revenues evolve.

Earlier this month, Boeing Co <BA.N> Chief Executive Dave Calhoun told NBC he thought that a major U.S. carrier could go out of business in the fall, when government payroll aid for airlines will expire.

U.S. airlines, suffering an unprecedented downturn in air travel because of the pandemic, have warned they may need to eliminate jobs after Oct. 1 but Parker said the company aimed to avoid furloughs.

Nearly 40,000 of its more than 100,000 employees have opted for an early retirement, reduced work schedule or temporary leaves, he said.

American’s revenues are down by about 90% due to the outbreak, but demand is improving and net receipts have been in positive territory for the past 2-1/2 weeks after a period when airlines were receiving more cancellations than new bookings.

“More and more people are feeling more comfortable today, but we need to get to a point where all Americans are as comfortable flying as they should be,” he said.

American’s planes were about 56% full over the long U.S. Memorial Day weekend, albeit in drastically reduced capacity, he said. American is flying about 20% of its normal schedule.

This article was originally published on finance.yahoo.com/news/.

Home of Science
Follow me

Latest posts by Home of Science (see all)
- Advertisement -

Discover

Sponsor

Latest

When will the coronavirus pandemic and social distancing end?

As the gears of the modern world grind to a near halt, one question is likely on the mind of many: When will the...

What Is Amazon Prime?

Amazon Prime is one of the most popular forms of entertainment. With a Prime membership, you will enjoy all of the high-end features and...

Audience Member Confirms Half Nelson Will Is A Musical

Audience Member Confirms Half Nelson Will Is A MusicalThe creator of another hilarious Broadway show, Hairspray, is going to be making her Broadway...

TSX Gains Over 5% Amid Signs Of Slowdown In Virus Spread

The Canadian stock market ended on a high note on Monday on hectic buying at counters across the board after data showed the number...

Why is Sabre Corporation Going Bust?

Why is Sabre Corporation Going Bust?Is there a company that is in trouble? The answer to this question is a resounding yes. Yet...
Home of Science
Follow me
Latest posts by Home of Science (see all)